Bonds issue: KCB to offer KSh 300b note to raise financing over 5 years

This story has significance for readers across Kenya and beyond.

- KCB Group unveiled its Sustainability Bond Framework on August 19, 2026, ahead of a planned KSh 300 billion Medium Term Note Programme

- The framework received a Sustainability Quality Score of 2 — Very Good from Moody's, signalling strong credibility for future bond issuances

- KCB Group CEO Paul Russo said the initiative is about using finance as a force for good while creating sustainable value for stakeholders

Elijah Ntongai is an experienced editor at TUKO.co.ke, with more than four years in financial, business, labour and technology research and reporting. His work provides valuable insights into Kenyan, African, and global trends.

KCB Group has launched its Sustainability Bond Framework, setting the stage for a KSh 300 billion Medium Term Note (MTN) Programme to be rolled out over five years, with the first tranche targeting up to KSh 100 billion.

The bank announced the framework on August 19, 2026, noting that the bond offer remains subject to the necessary regulatory approvals.

Proceeds from the bonds will be ring-fenced and directed exclusively towards eligible Green, Blue and Social Projects, covering areas including renewable energy, green buildings, clean transportation, sustainable water management, agriculture, the blue economy, affordable housing, micro, small and medium enterprises (MSMEs), as well as women and youth-led enterprises.

KCB's Sustainability Bond Framework

The framework was assigned a Sustainability Quality Score (SQS) of 2, rated "Very Good" by Moody's. It is structured around two distinct features: use of proceeds bonds and sustainability-linked bonds, giving the group flexibility and credibility in future issuances.

Speaking at the launch, KCB Group CEO Paul Russo said the initiative builds on two decades of work by the bank in structuring financing solutions with measurable social and economic impact.

"This is about bringing capital, purpose and accountability and using finance as a force for good while creating sustainable value for all our stakeholders," Russo said.

Principal Secretary for the State Department for Public Investments and Asset Management, Cyrell Wagunda Odede, commended the move, describing sustainable bonds as critical instruments for attracting capital and unlocking new investment opportunities as Kenya deepens its capital markets.

KSh 187 Billion in Green Loans Since 2022

Principal Secretary for the State Department for Blue Economy and Fisheries, Betsy Njagi, said the framework complements the government's broader commitment to diversifying Kenya's development financing sources, adding that partnerships with institutions such as KCB are essential for directing capital towards environmental resilience and inclusive growth.

KCB Group's sustainability journey dates back to 2008, when it formally adopted sustainability as a core business principle anchored on four pillars: financial, economic, social and environmental sustainability.

Since 2022, the group has disbursed more than KSh 187 billion in green loans. In the last financial year alone, KCB disbursed KSh 48.8 billion in green financing across its regional markets, supporting projects in renewable energy, sustainable agriculture, green buildings, clean transportation, water management and climate-smart investments.

KCB Group is East Africa's largest commercial bank, established in 1896. It operates across Kenya, Tanzania, South Sudan, Uganda, Rwanda, Burundi and the Democratic Republic of Congo and maintains a network of 480 branches, 1,247 ATMs and over 1.4 million merchants and agents across the region.

What is KCB Group's financial performance?

In other news, KCB Group reported a 20.8% rise in profit before tax to KSh 49.3 billion for the first half of 2026, driven by higher income and disciplined cost management.

The bank’s board declared an interim dividend of KSh 3 per share, up 50% from KSh 2 paid in the same period last year, resulting in a total payout of KSh 9.64 billion.

KCB’s total assets grew 16.8% to KSh 2.3 trillion, supported by a 15.1% increase in customer deposits to KSh 1.7 trillion and a 14.2% rise in gross loans to KSh 1.3 trillion, while its non-performing loan ratio improved to 15.1%.

Source: TUKO.co.ke

Reporting originally appeared via TUKO. Read the full source for additional context.